Arbeitspapier

Product differentiation and profitability in German manufacturing firms

We use a unique rich newly built data set for German manufacturing enterprises to investigate the product differentiation firm performance relationship. We find that an increase in the degree of product diversification has a negative impact on profitability when observed and unobserved firm characteristics are controlled for. The effects are statistically significant and large from an economic point of view. This helps to understand the at least, at a first glance surprising fact that nearly 40 percent of all manufacturing enterprises with at least 20 employees in Germany are singleproduct firms according to a detailed classification of products, and that multi-product enterprises with a large number of goods are a rare species.

Sprache
Englisch

Erschienen in
Series: Working Paper Series in Economics ; No. 115

Klassifikation
Wirtschaft
Firm Behavior: Theory
Industry Studies: Manufacturing: General
Thema
Product differentiation
profitability
Germany

Ereignis
Geistige Schöpfung
(wer)
Braakmann, Nils
Wagner, Joachim
Ereignis
Veröffentlichung
(wer)
Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
(wo)
Lüneburg
(wann)
2009

Handle
Letzte Aktualisierung
20.09.2024, 08:24 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Braakmann, Nils
  • Wagner, Joachim
  • Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre

Entstanden

  • 2009

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